High demand for AI-optimised infrastructure, says Dell management during earning call

Dell posted a revenue of $20.9 billion in the first quarter of fiscal 2024, which is down 20%.

During the announcement of financial results for its fiscal 2024, the management of Dell Technologies spoke on the impact of AI on their products' demand growth.

While speaking on demand for AI PCs, Chuck Whitten, Co-COO at Dell Technologies, said, "We see a lot of demand for AI-optimised infrastructure, a very good thing for our business. As the leader in infrastructure and data that obviously has, it's good news for our business.

"Demand for our XE9680, that's our 16G and first-to-market purpose-built AI server with eight NVIDIA H100 or A100 GPUs, has been very good, but we also see demand across our portfolio."

He further added by saying, "AI is going to drive demand for our business. It's going to drive demand for our business on-premise and at the edge, which is incremental growth and profitability for us."

The company's overall server mix does not include AI-optimised servers since excitement over AI applications far outpaces GPU supply right now. In order for their server business to fully recover, mainstream service must also accelerate, according to the COO.

Adding to the impact of AI their product demand faces, Jeff Clarke, COO & Vice Chairman of Dell Technologies, added, "We've had AI in our PCs for years. So, I don't know what was recently said, but we've been putting AI in our products across our server portfolio, storage portfolio, and our PC portfolio for many, many years."

"We're excited in the PC with what was announced at Build last week with new versions of Windows 11 with co-pilot and more integrated AI capability," he further added.

Dell posted a revenue of $20.9 billion in the first quarter of fiscal 2024, which is down 20%. The company generated operating income of $1.1 billion and non-GAAP operating income of $1.6 billion, down 31% and 25%, respectively. Diluted earnings per share were $0.79, and non-GAAP diluted earnings per share were $1.31, down 42% and 29%, respectively. Cash flow from operations was $1.8 billion.